The Globe and Mail had a great article about the most popular mortgage rate topic of the moment which is whether to go with a fixed rate or variable rate mortgage.
It looks at the biggest question people are facing right now if they’re in the market for a mortgage: with fixed rates so low, does it makes sense to lock in your mortgage now for 7-10 years, or is the premium over variable mortgage rates too high to make sense?
The lowest 7 year fixed rate listed on RateSupermarket.ca is currently ING @ 5.25% and the best 10 year is 5.35%. With 5 variable rates at 1.95%, you would be paying a hefty premium for the security of knowing your ongoing payments for the next 7-10 years, but the article goes on to say, the best option really depends on what your risk tolerance is.
As always speak to a mortgage expert before making any decisions.
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